Finance News

Inventory futures are flat with S&P 500 on new report

A trader works on the New York Stock Exchange (NYSE) in New York on August 20, 2021.

Andrew Kelly | Reuters

US stock futures remained stable in overnight trading on Wednesday following the rally in the S&P 500 that saw the index cross 4,500 for the first time.

Dow futures rose 25 points. S&P 500 futures gained 0.03% and Nasdaq 100 futures were unchanged.

Software giant Salesforce stocks rose 2% in expanded trading after the announcement of second-quarter results and forecasts that beat analysts' estimates. Ulta Beauty also rose 6% in after-hours trading on the back of strong results.

On Wednesday, the Dow Jones Industrial Average rose 39 points. The S&P 500 gained 0.22% to close on a record, led by stocks that are benefiting from the economic reopening such as airlines, cruise lines and financial companies. The 500-share average broke above 4,500 for the first time on Wednesday, but closed below that level.

The Nasdaq Composite rose 0.15% and also hit a record close.

The benchmark ten-year government bond yield rose as high as 1.352% on Wednesday, its highest level since the beginning of the month when it returned as high as 1.364%.

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“The yield on ten year government bonds has continued to rise in the last few days and exploded in (Wednesday) trading, sending a strong message that the delta variant of Covid in the US may be peaking, which will boost confidence, the economic reopenings should resume and drive investment flows towards small caps and cyclicals, "said Jim Paulsen, chief investment strategist of the Leuthold Group.

The much anticipated Jackson Hole Symposium begins Thursday. At the event, central bankers could share their plan to curb monetary stimulus. In response to the pandemic, the Federal Reserve has bought at least $ 120 billion a month in bonds to curb longer-term interest rates and stimulate economic growth. Chairman Jerome Powell is due to comment on Friday.

"Expect investors to keep an eye on the Fed symposium for the remainder of this week for comments on the rate hike or the timing of rate hikes," Paulsen said. "Either unexpected comments from the Fed or a failure or success in scaling up 4500 could add additional volatility to the equity and bond markets."

Last week's unemployment claims data will be released Thursday at 8:30 a.m. ET. Economists polled by Dow Jones expect 350,000 Americans to register as unemployed last week, compared with 348,000 the previous week.

Several companies reported quarterly earnings on Thursday, including Dell Technologies, Gap, HP and Abercrombie & Fitch.

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